Quantitative Easing to boost European real estate market

THE European Central Bank’s (ECB) €1 trillion quantitative easing (QE) programme could “significantly boost” flows into European real estate, with property likely to become even cheaper for investors outside of the Eurozone.

M&G Real Estate said yesterday it had compared the impact of earlier QE on the commercial property markets in the US, UK and Japan. Six years after monetary easing programmes were first introduced, both the UK and US had benefitted from increased output, employment growth as well as buoyed financial data.

“There are strong grounds to suggest this will be mirrored in continental Europe given the latest stimulus plans mark by far the largest injection in the region,” M&G’s Richard Gwilliam said.

Separate research from Cushman & Wakefield predicts trading to break last year’s €275bn (£196bn) record due to QE and the growing attractiveness of European markets.